TL;DR
The US Federal Reserve raised its target federal funds rate by 25 basis points to 3.75%-4% on September 16, 2026, marking its first rate hike since July 2023, in response to persistent inflation.
Event overview
According to Xinhua News Agency, the US Federal Reserve announced on September 16, 2026 (Wednesday, local time) a 25-basis-point increase in its target federal funds rate, to a range of 3.75%-4%, to address persistent inflation. This is the Fed's first rate hike since July 2023.
Key facts
- Hike size: 25 basis points.
- New range: target federal funds rate raised to 3.75%-4%.
- Date: September 16, 2026 (Wednesday, Eastern Time), decided by the Federal Open Market Committee (FOMC).
- Milestone: first rate hike since July 2023.
- Official rationale: the FOMC statement said economic activity is expanding at a solid pace, domestic spending has been resilient, productivity growth is strong and capital investment robust, job gains have kept pace with the workforce, and the unemployment rate has changed little; uncertainty remains elevated partly due to geopolitical developments, so the Committee raised rates to address persistent inflation.
Official sources
- Xinhua News Agency (September 17, 2026): U.S. Fed announces 1st interest rate hike in over 3 years
- China.org.cn / Xinhua (September 17, 2026): Xinhua world news summary